Technocraft Industries outlines TDS details on interim dividend

Yash Agarwal — Tue, 26 May 2026 09:00:12 +0000

Technocraft Industries (India) has communicated with its shareholders regarding the deduction of tax at source (TDS) on the interim dividend payment. The company has sent an email to shareholders whose email IDs are registered, explaining the process of withholding tax from dividends at prescribed rates.

The Board of Directors of Technocraft Industries is set to consider the payment of an interim dividend in its upcoming meeting on 28 May 2026. The record date for the interim dividend will be fixed accordingly. Shareholders are advised to submit necessary documents before this date to avail of any concessional TDS rates.

According to the Income Tax Act, 2025, dividends are taxable in the hands of shareholders. Technocraft Industries is required to deduct tax at source when making interim dividend payments. The TDS rate varies based on the residential status of the shareholder and the documents submitted.

For resident members, a TDS rate of 10% applies if the Permanent Account Number (PAN) is updated with depositories. No tax will be deducted if the dividend does not exceed ₹10,000 in the financial year 2026-27 or if the member is exempted from TDS provisions and provides necessary documentation.

Resident members submitting Form 121, insurance companies, corporations established by a Central Act, mutual funds, and alternative investment funds can avail of NIL tax deduction, provided they submit the required documentation. Members without a PAN or with an invalid PAN will face a 20% deduction.

For non-resident members, a TDS rate of 20% plus applicable surcharge and cess applies, unless a lower rate under a Double Taxation Avoidance Agreement (Tax Treaty) is applicable. To benefit from the Tax Treaty rate, non-resident members must submit specific documents, including a Tax Residency Certificate and a self-declaration of eligibility.

Technocraft Industries has set a deadline of 6 June 2026 for shareholders to submit the required documents to determine the appropriate TDS rate. No claims will be entertained for taxes deducted at a higher rate if documents are not submitted by this date.

Additionally, the company highlights the requirement for PAN to be linked with Aadhaar. Failure to link PAN with Aadhaar will result in a higher TDS rate of 20%.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

Technocraft Industries | Business Upturn

Technocraft Industries outlines TDS details on interim dividend